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CARES Act PPP abuse?


DizRotus

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12 minutes ago, dwilawyer said:

This just is in from banker, no more funds for PPP, not sure if that is regionally or nationally.  This bank isn't accepting any new applications. 

 

My local business banker said that “most” pending applications are considered to be funded.  Only applications denied on the merits won’t get funds.  He advised that our application is on its way to underwriting.  I hope he’s right. 

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7 hours ago, DizRotus said:

 

My local business banker said that “most” pending applications are considered to be funded.  Only applications denied on the merits won’t get funds.  He advised that our application is on its way to underwriting.  I hope he’s right. 

Same info I got. If you got app. in things are ok, it was in reference to a new app. and it was for the program that opened just last Friday for self-employed/ind. contractors.

 

When (not if) you are funded, be sure and look at that fine print on what you need to account for, record keeping, etc. It may be way different than what you typically keep track of for 940/941 info. etc.

 

Travis

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Our PPP application status on my bank’s site still says, “Under Review.”   Our banker is no longer certain the application has earmarked any of the now exhausted funds.  I’m still holding out slim hope that the PPP application was successful.  Plan B is to hope that our application stays in the system to put us in a position to get some of the next wave of funds.

 

I decided to pay our 3 employees, but I will not be able to pay again in two weeks unless PPP comes through, or the economy opens up, or pigs fly.

 

I can only wonder how many nail salons, food trucks, etc., the truly small businesses, got their share of CARES Act funds, I suspect almost no one.  The hedge fund managers and other financially sophisticated “small businesses” seemed to have successfully swooped in and sucked the life out of the intent of the PPP and the CARES Act.

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3 hours ago, DizRotus said:

Our PPP application status on my bank’s site still says, “Under Review.”   Our banker is no longer certain the application has earmarked any of the now exhausted funds.  I’m still holding out slim hope that the PPP application was successful.  Plan B is to hope that our application stays in the system to put us in a position to get some of the next wave of funds.

 

I decided to pay our 3 employees, but I will not be able to pay again in two weeks unless PPP comes through, or the economy opens up, or pigs fly.

 

i can only wonder how many nail salons, food trucks, etc., the truly small businesses, got their share of CARES Act funds, I suspect almost no one.  The hedge fund managers and other financially sophisticated “small businesses” seemed to have successfully swooped in and sucked the life out of the intent of the PPP and the CARES Act.

I know someone whose banker accepted all the application materials, told him in writing his company was approved and that they would have him come in and sign at "closing" in a few days... which turned into a week, which turned into 10 days... which finally resulted in a notice from the bank that funds had run out and nobody else will be getting any dough.  He's wondering what the heck happened that they seemingly sat on it for so long.  Did the bank drop the ball?  He has the written notice he was approved.  It is kind of suspicious.  

 

Compounding the concern quite drastically is the fact that this PPP money is not repayable  if you spend at least 75% of it on payroll.  So, can you imagine what the damage model looks like in a lawsuit for negligence or breach of contract?   It's a lot different than having a complaint that you didn't get money you'd have to pay back with interest.

 

Can you imagine how many people might be affected in a similar way?

 

 

 

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I have been informed by our bank that our PPP funds are approved.

 

9 hours ago, Jeff Matthews said:

Compounding the concern quite drastically is the fact that this PPP money is not repayable  if you spend at least 75% of it on payroll.

 

That will easily be accomplished in my case. 

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13 hours ago, DizRotus said:

Our PPP application status on my bank’s site still says, “Under Review.”   Our banker is no longer certain the application has earmarked any of the now exhausted funds.  I’m still holding out slim hope that the PPP application was successful.  Plan B is to hope that our application stays in the system to put us in a position to get some of the next wave of funds.

 

I decided to pay our 3 employees, but I will not be able to pay again in two weeks unless PPP comes through, or the economy opens up, or pigs fly.

 

i can only wonder how many nail salons, food trucks, etc., the truly small businesses, got their share of CARES Act funds, I suspect almost no one.  The hedge fund managers and other financially sophisticated “small businesses” seemed to have successfully swooped in and sucked the life out of the intent of the PPP and the CARES Act.

I'm sad to hear this.  Your bank should know this by now.

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A friend of mine in Ohio got an email from the same bank advising him that his PPP application—filed a day later than mine, and with my assistance—was approved.  I got an email advising that funds ran dry before my PPP application was approved.  It did say the application would continue being processed pending availability of additional funds.

 

The good news is that I seemed to successfully apply for unemployment for wife and me as self employed.  Two out of three employees have also applied for unemployment.  The third is running into an issue that traces back to a SNAFU where someone else accidentally applied for unemployment under our employee’s SS#.   If the PPP eventually is funded, unemployment compensation won’t be an issue.  Fingers crossed.

 

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Shake Shack, a publicly traded business, has pledged to return the $10,000,000 "loan" it received under PPP.  I will eat at Shake Shack when this is over.

 

Today, a $3,000 ($1,000/employee x 3 employees) EIDL advance appeared in our business checking account.  On the PNC Bank site, the status of our PPP application has advanced.  I'm now somewhat encouraged that we will get our small share of the CARES Act funding.

 

Stay sane and stay safe.

@jwc

 

PPP status 042120.png

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Well's Fargo was one of the three banks we applied with.  It was comical really, as they didn't have us "apply" initially but prescreened us with "how much loan are you asking for?"

 

Synovus asked for a little more info initially and United Community Bank (UCB) was a full-on application asking for all the financials and such.   UCB was ultimately who we used.

 

jc

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Wells Fargo has had and continues to have some major issues regarding their business operations.  Personally, with the exception of this situation, I couldn't see myself dealing with them, based on their track record.  I hope you are all successful in obtaining these loans/grants to help you survive this time.  I just need to get the doors back open, it's the only thing that might fix the business i run.  Hope you are all well. 

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On 4/22/2020 at 4:06 PM, Pete H said:

Wells Fargo has had and continues to have some major issues regarding their business operations.  Personally, with the exception of this situation, I couldn't see myself dealing with them, based on their track record.  I hope you are all successful in obtaining these loans/grants to help you survive this time.  I just need to get the doors back open, it's the only thing that might fix the business i run.  Hope you are all well. 

 

I agree about Wells Fargo.  They’re name and reputation are seriously tarnished, IMO.

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Still no PPP cash to supplement the $3,000 EIDL advance.  My wife and I did receive PUA of $1,520 ($760/week x 2 weeks) each as self-employed.  Our small business might survive yet.

 

One of our three employees was prevented from filing an unemployment claim online.  She got an error message advising that a problem with her SSN necessitated a telephone call.  Getting through on the phone is impossible.  Fortunately, a message I sent to Michigan UIA prompted a call from them to me.  I was able to give the caller our employee’s phone number.  A call took place and the claim has been filed.

 

If PPP does eventually come through, as I expect it to, I will have to decide whether to resume payroll or make it possible for our employees to collect $962/week for 8 weeks, which is more than their paychecks would be.

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